Marin budget up to $490 million, 'best' in years

They're not exactly singing "Happy Days Are Here Again" over at the Civic Center, but fiscal officials say county coffers are flush with enough cash to balance the budget for the next two years, retain current services and provide raises all around.

Although the occasion is expected to be largely ceremonial because most issues were resolved earlier this year, county supervisors next week are scheduled to adopt a $490 million budget for fiscal 2014-15, up about 5.8 percent over this fiscal year's program.

"It is the best budget we've had in five years," county Administrator Matthew Hymel said. "We're not reducing any services."

And for the first time in five years, cost-of-living raises will be issued to most of the county's 2,050 employees. While most rank-and-file workers will get a 2.8 percent boost, supervisors approved a 10 percent raise for themselves, bringing their own salaries to about $109,000 a year. The average salary for department heads at the Civic Center is $180,000.

After five years of paring the payroll, trimming the workforce 11 percent and cutting $30 million in expenses, the county cash register is filling up as home values increase, real estate sales surge and tax revenues rise.

Property taxes in fiscal 2014-15 are projected to generate almost $107 million for county coffers, up 4 percent or about $5 million more than this year — an increase that covers about two-thirds of the cost of employee pay raises.

Although the fiscal news is bright, officials say more tax money is needed to pay for a variety of programs. Tax increases to pay for children's preschool, nutrition, health and childcare services, and to finance a new police and fire radio system, are headed for November's ballot.

Costs calculated across all funds indicate this year's $78 million pension and retiree health payment tab, which was up from $75 million the year before, will increase about $500,000 next fiscal year.

Pension debt also looms as critics including former assemblyman Joe Nation and Stanford academics have calculated Civic Center's unfunded pension and retiree health liability at more than $2 billion using conservative assumptions — triple the pension debt the county calculates using optimistic assumptions about buoyant stock market earnings. Next year's budget tucks away $14 million to reduce liability.

One source of funding that may be at issue next week is the county's $8 million share of a windfall triggered by a state audit that confirmed overpayment to an education reserve fund. Hymel wants to use half the money to pay for expenses related to a new computer system, $2.3 million to remodel and upgrade office space at the Civic Center, $2 million for pension expenses and $1 million for roads programs.

The county board begins two days of final review of the Hymel's spending blueprint at 9 a.m. Monday with an overview of the fiscal situation, public commentary and a summary of programs in each key service area. The session concludes with commentary by supervisors. The hearings resume at 9 a.m. Wednesday with public comment and a review of capital improvement and special district spending, then conclude that day with closing statements and adoption of the program.